By Richard Pizzi, Associate Edit o2/05/07
NEW YORK – The market for electronic health records in the United States is poised to grow at a rate of 13.5 percent over the next four years, and by 2015 it will top $4.85 billion, according to a new study from Kalorama Information.
“The best type of market is one with a guaranteed pool of new customers, and that describes the EMR market in the U.S. ” said Bruce Carlson, associate publisher at Kalorama Information. “Budgeted IT spending by healthcare organizations in 2007 and 2008 will create a robust marketplace for both existing players in EMR and new entrants.”
Kalorama Information – the publishing division of MarketResearch. com – released its EMR market estimates in its recent report, U.S. Market for EMR Technologies.
The report projects a stable 13.5 percent compound annual growth rate in the EMR market each year until 2009. At that point, Kalorama predicts that the market will grow an additional 2 percent annually until 2012, where it will remain steady at 19.5 percent CAGR until 2015.
Carlson said that although the combined market share of the top five EMR vendors was currently as high as 70 percent, overall market growth would provide opportunities for new players to enter.
“If most healthcare entities had already adopted an EMR system, it could be said that current market leaders should remain in their market share positions,” Carlson told Healthcare IT News. “But because there is only a 23 percent EMR adoption rate in the U.S. , the current list of top companies may not reflect the list we will see in 2015.”
Carlson said that an expanding market for EMR systems means that new entrants might be especially successful targeting underserved areas such as physician practices. He added that Kalorama anticipates that there would also be room in the hospital IT market for new companies, but that there is greater growth potential in providing EMRs to physicians.
“It’s also important to recognize that service and support is as important as product,” Carlson said. “New players with excellent support could shake up the EMR market dramatically.”
The Kalorama study also notes that the creation of national standards for electronic health records and increased funding for the development of Regional Health Information Organizations (RHIOs) would do a great deal to boost the healthcare IT market.